From the recently published white paper Hospitality Inflation Report 2023 shows that the hotel sector has effectively tackled inflation and successfully passed on increased energy and labour costs to guests. This ability to control costs and maintain profitability is one of the industry's greatest strengths. The report, prepared by SuitePad, Europe's leading supplier of tablets for the hospitality industry and expert in digital communication with guests, also reveals that this successful cost management applies only to the Average Daily Rate (GDP) and not to ancillary services. While the Average Daily Rate (ADR) in Europe increased by 18.5% to EUR 135.4 in 2022 compared to the previous year, prices for complementary services such as breakfast, room service and spa treatments were only increased by an average of 7%.
"An increase of 7% in prices for additional services is relatively high, but still remains below the current inflation rate of 9.2 per cent in the eurozone and seems even more moderate compared to the increase in ADR," said Moritz von Petersdorff-Campen, co-founder and managing director of SuitePad.
"Our conclusion and, at the same time, our recommendation to the hotel industry is to review the current pricing of the aforementioned complementary services - upselling - and increase it if necessary. After all, if a guest is willing to spend, say, 20 per cent more on his room, he should surely also be willing to pay 10 per cent more for breakfast," said v. Petersdorff-Campen. The Hospitality Inflation Report distinguishes between individual ancillary services and their prices, takes into account different star ratings and provides a comparative analysis of their services and prices.
SuitePads is used in over 1,000 hotels worldwide, in more than 30 countries and provides valuable data for analysing and optimising guest behaviour in more than 70,000 hotel rooms. The cloud-based software allows hoteliers to seamlessly integrate an easy-to-use booking tool for additional services such as room service, spa treatments and much more into their in-room tablets. Hotel management independently sets prices for these services and can adjust them at any time. SuitePad uses this data to gain exclusive insights into pricing, guest behaviour and to help the hotel industry maximise its revenue potential.
SuitePad is the leading provider of in-room tablets in the hotel industry. The award-winning solution combines a guest guide, booking tool, phone, TV control and more in one device. More than 1,000 customers worldwide - from renowned hotel chains to independent boutique hotels - use SuitePad to improve communication with guests, generate higher sales revenues and optimise processes. In January 2023, the Berlin-based company was awarded the HotelTechAward "Best Guest Room Tablet" for the fourth consecutive time.